Practices Used in Estimating the Cost of Capital and Investment Appraisal in the Chilean Forestry Sector

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dc.contributor.authorAcuna, Eduardo
dc.contributor.authorCancino, Jorge
dc.contributor.authorVásquez Lavín, Felipe
dc.contributor.authorMena, Pablo
dc.contributor.authorSánchez, Karen
dc.date.accessioned2016-11-18T19:19:17Z
dc.date.available2016-11-18T19:19:17Z
dc.date.issued2015
dc.description.abstractThe proper determination of cost of capital is crucial in the maximization of forest enterprises value as it depends on the capital budgeting decisions made by the managers. It is unknown whether the firm size has an effect on the techniques used to determine the cost of capital in the Chilean forestry sector. The main objective of this research was to determine the practices used by decision makers from the forestry sector to estimate the cost of capital and, at the same time, how their investments how evaluated. In order to carry out this study, a survey was conducted by using the SurveyMonkey online tool. The final survey consisted of 20 questions. A total of 189 people from 49 companies were registered. The study allows concluding that the net present value (NPV) is the main investment appraisal used by decision makers from the Chilean forestry sector. On the other hand, the estimation of the cost of capital is mostly performed by means of the Cost of Debt method. In addition, it was verified that there is a lack of knowledge on the budging techniques used worldwide.
dc.identifier.citationAcuña, E.; Cancino, J.; Vásquez, F.; Mena, P.; Sánchez, K. Practices used in estimating the cost of capital and investment appraisal in the Chilean forestry sector e Agronegocio on line, 2015, vol. 11, n° 2, p. 214-228
dc.identifier.urihttp://hdl.handle.net/11447/835
dc.language.isoen_US
dc.subjectCost of capital
dc.subjectBudget of capital
dc.subjectSilviculture
dc.subjectNet present value
dc.subjectCAPM
dc.titlePractices Used in Estimating the Cost of Capital and Investment Appraisal in the Chilean Forestry Sector
dc.typeArtículo

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